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WGU Accounting-for-Decision-Makers Exam - Topic 4 Question 1 Discussion

Which action should a managerial accountant consider taking if confronted by an ethical conflict?
A) Use an objective advisor confidentially
B) Report directly to the chief executive officer
C) Confer with any stakeholder in the organization
D) Consult with a coworker

WGU Accounting-for-Decision-Makers Exam - Topic 4 Question 1 Discussion

Actual exam question for WGU's Accounting-for-Decision-Makers exam
Question #: 1
Topic #: 4
[All Accounting-for-Decision-Makers Questions]

Which action should a managerial accountant consider taking if confronted by an ethical conflict?

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Suggested Answer: A

The correct answer is A. Use an objective advisor confidentially. The IMA Statement of Ethical Professional Practice includes guidance for resolving ethical conflict and notes that management accountants may wish to discuss the matter with an objective advisor to obtain a better understanding of possible courses of action. This step is intended to help the accountant evaluate the issue carefully while preserving confidentiality and professionalism.

Option B is not the best answer because going directly to the chief executive officer is not always the first or most appropriate step. Ethical conflict guidance usually recommends following the organization's established chain of command unless the issue involves that level of management. Option C is incorrect because discussing the issue with ''any stakeholder'' could violate confidentiality. Option D is also weaker because consulting a coworker is not the same as seeking advice from an objective and appropriate advisor. The emphasis in professional ethics guidance is on confidentiality, sound judgment, and proper escalation. Therefore, the most suitable action among the options given is to use an objective advisor confidentially, making Option A correct.


Contribute your Thoughts:

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Earleen
10 hours ago
Reporting directly to the CEO seems too drastic unless it’s a serious issue. I’d want to talk to someone first, but I’m not sure who.
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Leonora
6 days ago
I feel like conferring with any stakeholder could lead to more complications. I’d probably lean towards consulting a coworker instead.
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Leota
11 days ago
I remember a practice question where we had to decide whether to report to higher management or consult first. It was tricky!
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Audry
16 days ago
I think using an objective advisor confidentially makes sense, but I'm not entirely sure if that's the best first step.
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